Kenyan Cabinet Halts Privatization, Boosts Sugar and Dairy Industries

The Cabinet of Kenya has put on hold the privatization of six state-owned sugar millers, choosing instead to focus on their revitalization and commercialization. The sugar businesses, which include Mumias, Nzoia, Chemilil, Miwani, Muhoroni, and South Nyanza, will now be operated via a lease and operating framework, paving the way for sector renewal. In addition, the Cabinet has extended duty-free imports of milled sugars to address high retail prices.

In other matters, Kenyans who have reached 65 years will undergo fresh registration to update the database of the Inua Jamii Safety Net programme. The initiative, to be launched on September 1, aims to increase the beneficiaries from the current 1.2 million.

The National Oil Corporation of Kenya (NOCK) will be revitalized and commercialized through a restructuring that splits it into three subsidiaries. This move is expected to benefit the petroleum products value chain.

The dairy industry will also receive a boost through duty-free imports of raw materials for animal feed production. The government aims to decrease production costs and improve competitiveness. The President confirmed a commitment of Sh3 billion towards dairy infrastructure modernisation over three years and an additional Sh8 billion for milk coolers. The aim is to increase milk production from five to ten billion litres annually.

Furthermore, the Cabinet endorsed the approval by Afrexim Bank for a Sh420 billion equity investment in Special Economic Zones and Export Processing Zones. This investment, expected to stimulate local manufacturing and exports, is planned for locations including Dongo Kundu, Naivasha, Isiolo, Sagana, Delmonte, Eldoret and Busia. Among the benefits anticipated from these economic hubs are Export Quality Assurance, Packaging, and the roll-out of electric boda bodas to promote e-mobility.